A five-day rally in 10-year US Treasuries came to an end on Wednesday, following a lukewarm response from investors to a USD 42 billion bond auction. Government bonds across Europe and Asia also lost ground. Further volatility looks likely in the near term as markets respond to central bank policy meetings and economic data. Central banks in Europe have been moving ahead of the Federal Reserve in cutting rates, with the easing cycle kicked off by the Swiss and Swedish central banks. But, our base case remains that the Federal Reserve will also start easing policy, most likely starting at its September policy meeting, ... (full story)